The University of Oregon's Johnson Hall pictured in a file photo.
Kaylee Domzalski / OPB
Oregon’s higher education leaders say the state’s seven public universities and 17 community colleges need more money to keep pace with rising costs.
Left unaddressed, they warn, institutions could face steeper cuts and families could have to shoulder more of the burden by paying more for tuition.
Those concerns were highlighted last week as leaders with the Higher Education Coordinating Commission — the state agency that oversees public universities and community colleges around Oregon — approved a preliminary $4.4 billion budget. Commissioners said they approved the budget reluctantly, given the financial headwinds facing public higher education institutions and flat state support.
“I think our ability to meet the needs of students and parents and the state is diminishing on a yearly basis, and more people need to speak up,” Richard Devlin, a former Democratic state lawmaker who serves on the commission, said in a public meeting on Aug. 13. “We need to find some way to solve this. Otherwise, I think things will only become worse.”
Oregon has trailed most other states in public higher education funding for years. University budgets are beset by declining enrollment, shifting federal funding priorities, increasing personnel costs and more.
Leaders have not yet made a specific request for additional money from the state. But at least one estimate says the state “should more than double its budget for public higher education,” from $1.2 billion annually to $2.5 billion, according to a commission subcommittee that analyzed how Oregon compares to other states and the national average in how it pays for community colleges and universities.
The funding problems have pushed public universities into financial disarray. It has also soured negotiations with employee unions who are vying for better pay and say spending growth among administrators has outpaced that of classified staff. Nearly all of Oregon’s public universities have recently faced budget cuts and layoffs in some form.
Often, it has also meant steeper tuition for students. Devlin said he anticipated the annual cost of attending the University of Oregon, for example, could exceed $40,000 within the next two years.
Last week, the commission wrote a letter to Gov. Tina Kotek after approving the agency request budget, which she will consider while piecing together her overall state budget for the upcoming legislative session. The budget applies to universities, community colleges, Oregon Health & Science University, workforce development agencies and the commission’s own operations.
At its current funding level, the state’s “public colleges and universities will struggle to maintain current levels of programming, tuition, and student support,” the commission’s letter said.
The fiscal struggles for Oregon’s higher education system are “serious, and greater levels of investment are not only necessary, but a worthy and strategic way to help Oregon grow into a future of robust and shared prosperity,” Greg Hamann, the commission’s chair, said in the letter.
The University of Oregon is trying to figure out how to fill a $65 million budget hole. Southern Oregon University needs to cut $20 million or it could run out of money by next June.
Post-secondary education institutions are critical pipelines for Oregon’s workforce and the state’s economy. Kotek — who is running for re-election — has honed in on boosting the state’s sluggish economy, convening a “Prosperity Council” that seeks to incentivize business investment in part through the higher education system.
The state should “strategically align higher education funding with West Coast states to strengthen Oregon’s workforce, research, innovation, and industry partnerships in high-growth sectors,” says one of the council’s recommendations. The state commission pointed to the recommendation in their letter.
“It is certainly a challenging moment for Oregon,” Ben Cannon, the commission’s executive director, said in a recent commission meeting. “This budget certainly leaves a lot to be desired.”
The governor’s office did not return a request for comment.
